before i start, let me just say you are right about the basic principal of how to build a shock, except the shock you mentioned are the ones used for small applications like rc cars or machine dampeners....
modern car shocks use fluid and air (nitrogen normally) to dampen the energy from the spring. the shock converts the energy into heat as it dampens the load bfrom the spring. when you increase spring rate and load on the shock, what do you think happens to the oil that is inside it. it heats up beyond what they are designed for. go see what your engine oil looks like after a track day vs a few weeks cruising on the interstate.
also using your theory, we would never have blown shocks since they can just install over size valves and extra reservoir for oil are useless
tyyping on a phone, sorry for the typo
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